17/11/2021
So, a question that is asked a lot is “How much should I pay an Estate Agent to sell my house in the UK?”
Well, the simple fact is Estate agents’ fees vary enormously, but one thing for certain is they add thousands of pounds to the cost of selling a home. It is difficult if not impossible to avoid Estate agents fees.
That’s because Estate Agents work for the seller and not the buyer and therefore need payment from the seller. Now unless you make the mistake of signing a “ready, willing and able purchaser” contract with the Estate agent, then monies should not be paid to Estate Agent until contracts are exchanged.
Agents will either charge a flat fee to be paid up front (usually charged by online estate agents) or a “no sale, no fee” commission to be paid only if you sell (usually charged by high street agents).
So, then you ask, how do online Estate agents (e.g. Purplebricks) charge?
Many online estate agents have a different way of charging homeowners. Rather than “no sale, no fee”, they charge a fixed upfront fee. This can work out cheaper than paying a percentage of the sale price, but you will have to pay it whether your home sells or not.
So that’s on a brief how Estate agents work, but let's expand a little on the research available to understanding Estate agents fees.
• In terms of typical estate agent fees for selling, estate agents usually charge a percentage fee, which can range from 0.75% to 3.0%+VAT of the agreed selling price depending on the type of contract you opt for with your estate agent.
• The average estate agent fee is 1.42% of the final selling price (inc VAT), according to a July 2018 survey by the Advisory for sole agency. So for a £400,000 property, based on average 1.42% if sold at £400,000 you will pay £5,680.00
• Fees are sometimes quoted excluding VAT, which is currently 20%. So a 1% fee is 1.2% inc VAT, or £3600 on a £300,000 home and a 2.5% fee is 3.0% inc VAT, or £9,000 on a £300,000 home. Estate agents should clearly state whether fees include or exclude VAT. You need to be mindful of this!
So now you begin to understand the Estate agent costs involved in selling your property how long is the average time it takes for a Property to sell in the UK? Well in 2021 selling a property with Estate agents is around 100 days (3 and a half months)
However, if you get in touch with us today, we can reach out to our network of investors and if there is a match we can look to work with you and them and get an offer to you within 72 hours and a sale completed within 30 days. We look to take away the Estate agent fees in addition to No Legal Fees as we use our own trusted Solicitors whom have vast experience in property sales.
Interested to know more, Send a Message and we will be in touch
